Merced County pension fund to invest $20m in infra funds

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Merced County pension fund to invest $20m in infra funds

According to sources, the Merced County Employees' Retirement Association (MCERA) from California, will invest US$20 million with two infrastructure managers.

Steven Bland, a executive at MCERA, said that trustees received presentations from Morgan Stanley and KKR to introduce their products in the asset class at the pension plan's Sept. 25 Investment meeting.

Mr. Bland confirmed that commitments of US$10 million to each manager were approved. The deals are still subject to legal review and fee negotiations. Investment consulting firm Strategic Investment Solutions assisted with the selections.

MCERA's total investment portfolio was valued at $632 million as of March 31, 2014.

KKR Global Infrastructure Investors II LP is trying to gather $2 billion, about twice as much as the prior fund raised in Q2 2012. The fund was KKR's maiden infrastructure vehicle and had a global focus with a particular interest in the US and Europe. It seeks equity positions in brownfield economic and social assets with the scope to examine greenfield opportunities.

Morgan Stanley Infrastructure Partners II LP reached commitments of $1.517 billion in July 2014. The fund is targeting final close in the second half of 2015.

Morgan Stanley Infrastructure, which has teams in North America, Europe and Asia, invests in assets that provide public goods and services in sectors such as transportation, communications, energy and utilities.

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